VSAC Vermont Choice Loan

BENEFITS OF A VSAC VERMONT CHOICE LOAN

• Competitive fixed rates
• No origination fees
• Choice of 10- or 15-year repayment term
• 0.25% interest rate discount for auto-debit
• Cosigner release option
• Vermont-based financial aid experts to help you

VSAC VERMONT CHOICE LOAN ELIGIBILITY

To apply for the VSAC Vermont Choice Loan, the student borrower must:

• be enrolled in an eligible non-Title IV program as determined by VSAC, OR
• have a qualified back balance at a Title IV institution, from a term ending no more than 24 months in the past

and:

• be a Vermont resident attending in or out of state, or a nonresident borrowing for attendance at a Vermont school
• is U.S. citizen or eligible non-citizen
• is applying with an eligible credit-approved cosigner
• never defaulted on an education loan

If you're unsure whether you meet the eligibility criteria, please contact a VSAC loan counselor at 800-226-1029 (Monday–Friday 8:00 am to 4:30 pm).

VSAC VERMONT CHOICE LOAN COSIGNER

VSAC requires a credit-eligible cosigner for the VSAC
Vermont Choice Loan.

BENEFITS OF A VSAC VERMONT CHOICE LOAN Competitive fixed rates No origination fees Choice of 10- or 15-year repayment term 0.25% interest rate discount for auto-debit Cosigner release option Vermont-based financial aid experts to help you

VSAC VERMONT CHOICE LOAN REPAYMENT & INTEREST RATE

With the VSAC Vermont Choice Loan you'll be making monthly principal and interest payments while enrolled.

LOAN REPAYMENT TERMS

• Immediate repayment:
  • Principal and interest payments are due right away
  • First monthly payment due within 45 days of the final disbursement to the school
• The length of the repayment term is chosen by the borrower (either 10 or 15 years)
• Payments are required monthly. There are no prepayment penalties.
• Any outstanding interest is added to the principal (it is "capitalized") when the loan enters repayment.
• Up to 24 months of hardship forbearance is available as determined at VSAC's discretion.
• Repayment periods cannot be extended beyond the original term, other than through periods of approved forbearance.
• Loan debt is canceled completely if the student borrower dies or becomes totally and permanently disabled.

INTEREST RATES & FEES

Your VSAC Vermont Choice Student Loan has a fixed interest rate determined by the creditworthiness of the cosigner you select and the loan term you choose when you apply for the loan. Once your loan is in repayment, VSAC offers a 0.25% interest rate discount to borrowers who schedule automated debits through VSAC's LoanPay. The rates shown do not include the auto-debit discount.

The information below is for loans for the 2023-2024 school year.

Interest accrues on the loan from the date of disbursement.

VSAC VERMONT CHOICE LOAN AMOUNTS & PAYMENTS

With the VSAC Vermont Choice Loan, you choose the amount you want to borrow. Your school/program will certify your eligibility and schedule disbursements based on your enrollment period.

Minimum loan amount: $500
Maximum loan amount: Up to the cost of your education, minus any other aid, as determined by your school/program
Minimum payment amount: $20

MONTHLY & LIFETIME STUDENT LOAN PAYMENTS

The amount you'll pay each month—and over the life of the student loan—will vary based on your cosigner's credit history and the amount of your loan. The rate is fixed for the life of the loan and will not vary according to market conditions.

If you have additional questions on loan amounts and payments, call your VSAC Loan Counselor at 800-226-1029 (Monday – Friday 8:00 a.m. to 4:30 p.m.).

APR/Repayment examples for Choice Loan 2023-2024

Examples exclude 0.25% interest rate discount available at repayment for borrowers enrolled in auto payments through LoanPay.

$10,000 loan example

Assumptions: Two disbursements of $5000 each in September and January; Principal and Interest and Interest Only payments begin in February.

The application process:

1. Check to see if you may be eligible.
2. Click APPLY and log in to MyVSAC, VSAC's secure portal. New users will need to register.
3. Follow the steps and submit the application.
4. VSAC will notify you of the next steps, and you can check your pending application online at MyVSAC.

Once you submit the application, there are several steps in the process. Be sure to check your emails regularly for next steps. Allow at least 2 weeks from when you submit your application to when the funds will be ready to be sent to the school. 

What you'll need to complete the online application

You as the student borrower will need to provide:

• Name
• Date of birth
• Home address
• Citizenship (Resident Alien ID # if applicable)
• Driver’s license state 
• Social Security Number
• 2 personal references (someone you’ve known for at least 3 years; cannot use the cosigner as a reference)
  • name
  • address
  • phone
• School name
• Requested loan amount
• Approximate loan period for which you are requesting the loan (month/year)
• Cosigner’s email address

Your cosigner will need to provide:

• Name
• Date of birth
• Address
• Citizenship (Resident Alien ID # if applicable)
• Driver’s license state 
• Social Security Number
• 2 personal references (someone the cosigner has known for at least 3 years; cannot use the borrower as a reference)
  • name
  • address
  • phone